What are German stocks so cheerful about?
The Dax index is up 15 per cent this year. That is flattered by dividend payments, which are included in this benchmark, but even excluding that, the MSCI Germany index has also risen almost 10 per cent. In a nutshell: solid.
That clashes with a very long list of reasons to worry.
Germany is on the brink of chalking up two consecutive quarters of economic contraction — a technical recession — and data releases are providing a reliable drumbeat of misery.